News

Daily Newsletter - 2 September 2020

Summary

Macroeconomic News (2)

Next year's budget deficit will start at 7.5% of GDP

The starting point of next year's budget deficit will be at least 7.5% of the GDP, even if the economy recovered as quickly as the National Strategy and Forecast Commission (CNSP) expects it to, according to the Fiscal Council's opinion regarding the budget revision.

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BNR currency reserves down

The National Bank of Romania's (BNR) foreign currency reserves amounted to EUR 35.76 billion at the end of August, down EUR 481 million from the previous month, according to the official report. The gold reserves remained steady at 103.6 tons.

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Financial News (3)

MFP to borrow RON 4.54 billion this month

The Ministry of Finance (MFP) has scheduled loans worth a total of RON 4.54 billion this month, split between eight issues of state bonds worth RON 3.6 billion, one issue of discount T-bills worth RON 400 million, and various supplementary tenders.

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Prodplast earnings doubled

Prodplast, a producer of plastics, logged RON 3.3 million in earnings for the first half of this year, up 102.3% year-on-year. The company's sales revenues surged 46.2% to RON 53.1 million, according to ZF calculations based on the six-month report published on the stock market's website.

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75% of companies did not resort to bank of NBFI financing in past year

The main sources of financing used by companies between June 2019 and May 2020 remained internal, mainly due to a significant increase in profit reinvestment and asset selling, while bank loans remain a much less used option. The number of companies that opted for commercial loans and overdrawing their bank accounts continued to decline, according to a survey conducted by the National Bank of Romania (BNR).

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Investment News (4)

CNAIR calls for bids for highway feasibility study, technical project

The National Road Infrastructure Management Company (CNAIR) launched yesterday the call for bids for the feasibility study and technical paperwork needed for the Targu Neamt-Iasi-Ungheni highway. The contract is estimated between RON 62 million and RON 73.37 million.

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eMAG continues to consolidate stake in own delivery company

Dante International, the company that manages eMAG, Romania's leading online retailer, has reached a 92.83% stake in Delivery Solutions, the company behind Sameday Courier, following an equity boost worth RON 110,571, plus an issue bonus of RON 127.9 million.

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EY Romania looking for strategic investor

Ascendia has started working with EY Romania to identify and select one or more strategic investors in order to expand LIVRESQ, the company's new business line, at the international level, according to a report sent to the Bucharest Stock Exchange (BVB). The investment project is worth more than EUR 1 million.

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Rompetrol Downstream wants to buy 9 gas stations from Comision Trade

The Competition Council announced yesterday it was looking into Rompetrol Downstream's acquisition of the right to use nine fuel stations belonging to Comision Trade. The stations are located in Agigea, Braila, Focsani, Mangalia, Brasov, Zarnesti, Caracal, Caras Severin si Targu Jiu.

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Politics (1)

PSD strips four MPs of membership

Four MPs belonging to the Social Democratic Party (PSD) were stripped of their membership for having skipped Monday's Parliament session where the motion of censure was supposed to be voted on. Catalin Radulescu, Dan Ciocan, Adrian Todor and Roxana Paturca left the party, while Senator Carmen Dan was allowed to keep her party badge until a more thorough analysis of her situation was conducted.

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Social (2)

ADR signs financing contract for electronic ID platform

The Authority for Romania's Digitization (ADR) and the Ministry of European Funds (MFE) signed on Tuesday the financing contract for the electronic ID platform project. The platform will let citizens access online public services for 36 life events.

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Unemployment keeps rising

The unemployment rate reached 5.4% in July, compared to the previous month's from 5.3%, according to the National Statistics Institute (INS). The estimated number of unemployed (15-74 years old) was 484,000 people.

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